Walter Salis Schwabe, K.C., C.J.

1. The question referred for the opinion of the Court is whether the assessee is entitled to the deduction from the annual profits of what in fact is a loss made by him by the sale of certain machinery or plant. He carried on various businesses two of which consisted of rice-mills. He sold those mills and wishes to bring into account the difference between the purchase price of the machinery at those mills and the sale price, giving credit for the amounts, if any, allowed to him in previous years for depreciation. Whether he can do so or not turns on the proper interpretation of Section 9 of the Income Tax Act VII of 1918, Sub-section (2), Clauses (vi) and (vii). Certain specified allowances are thereby made which may be taken into account in arriving at the profits of the business. While the machinery is being used, Clause (vi) allows a certain annual depreciation on such machinery, the practice being, we are told, to consider that the machinery has a life of 15 years, and therefore to allow an annual depreciation as a general rule of 6 1/4 per cent. Clause (vii) deals with cases where the machinery has been sold or discarded as obsolete, an